Commerce, State issue new export rules

Wednesday, April 17, 2013

The U.S. Commerce and State departments have proposed a numberof amendments to two export control guidelines, the Export Administration Regulations and the International Traffic in Arms Regulations, to redefine the export of aircraft and associated munitions items as well as gas turbine engines.
This is the first set in a series of final rules redefining the regulation of commercial items with military application, according to a press release. The State Department pegs the export of aircraft and gas turbine engines at a $20 billion industry.
The changes are all in line with President Obama’s Export Control Reform initiative, first announced in 2009, which was aimed at modernizing export controls.
The State Department has proposed revising four munitions list categories and providing a few new definitions to the ITAR. Commerce, under the guise of the Bureau of Industry and Security, similarly revised its list so that both guidelines will be changed at the same time. The changes will go into effect Oct. 15.
According to the state department, these first rules represent one of 19 categories to be changed under the initiative.
Commerce’s proposed changes create 10 new export control numbers in the so-called "600 series" to control items moving from the State Department's U.S. Munitions List to the Commerce Control List. These items include related parts, components, software and attachments for aircraft and gas turbine engines.
According to a press release, the two bodies are striving to fundamentally reform the export control system, strengthening national security in the process.
"Today's publication of implementation rules is the result of extraordinary inter-agency cooperation to realize the president's vision of export control reforms that enhances national security by focusing our resources on the threats that matter most," Undersecretary of Commerce Eric L. Hirschhorn said in a statement.
The changes were initially proposed by the Commerce in five rules published starting in July 2011. - Jon Ross